U.S. Trade Deficit Widens Sharply in May 2026

The U.S. trade deficit increased by 42.2% in May, reaching $77.6 billion, as reported by the Commerce Department. This figure was slightly below economists' expectations of a $78.5 billion deficit. Imports rose 3.3% to $395.3 billion, largely due to a record high in capital goods imports at $128.0 billion. Exports decreased by 3.2% to $317.7 billion, although petroleum shipments reached an all-time high amid ongoing Middle East conflicts. Trade has negatively impacted gross domestic product (GDP) for two consecutive quarters, with the Atlanta Federal Reserve projecting a 1.2% annualized GDP growth rate for the second quarter, down from 2.1% in

the first quarter.